Based on updated forecasts for 2025, the need for external financing will increase by about $12-15 billion. This was stated by the Deputy Minister of Finance of Ukraine Olga Zykova, reports UNN.
Details
According to her, thanks to systematic work with international partners and the implementation of the necessary reforms and measures, in 2024, the country managed to attract about $24.7 billion in direct budget support. The funds received are the result of the effective implementation of indicators and reforms under donor cooperation programs.
The Ministry of Finance also pointed to financial challenges in 2025, including the required amount of external financing for the next year and ways to secure it.
According to the IMF's calculations under the Extended Fund Facility program, the need for external financing is estimated at $22.7 billion in 2025. Based on the revised assumptions underlying the forecast for next year, the need for external financing will increase by USD 12-15 billion. The intensity of hostilities and the risks of a prolonged war, as well as the systematic growth of security and defense sector expenditures, are the key factors that influence the growth of financial needs
Regarding the use of profits from the immobilized sovereign assets of the Russian Federation in favor of Ukraine, the Deputy Minister of Finance noted that the Government's position remains unchanged.
It is important to find mechanisms to provide Ukraine with additional financial resources for 2025 as soon as possible. In this context, the G7's joint decision to establish a financing mechanism backed by the proceeds of frozen Russian assets in favor of Ukraine is critical to fully fund all budgetary needs
AddendumAddendum
Zykova emphasized that by the end of 2024, reforms will be implemented under donor cooperation programs. By the end of this year, Ukraine expects to attract another $13.5 billion in external financing:
Бюджетні видатки цього року зросли на 10%: на що спрямували найбільше19.08.24, 13:31
- about EUR 4 billion from the European Union under the Ukraine Facility;
- more than $3.9 billion from the United States;
- about USD 2.2 billion from the IMF based on the results of the EFF Program;
- about USD 2 billion from the Government of Japan;
- about $500 million from the UK.
Recall
Finance Minister Sergiy Marchenko said that as of the end of July, Ukraine's budget deficit has increased, noting that the total need reaches 12 billion dollars.